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Last updated 9:40PM ET
March 3, 2021
Alabama
Alabama
Jefferson County Keeps Bankruptcy At Bay For A Few More Weeks
(2008-09-08)
(APR - Alabama Public Radio ) - Commissioners in Alabama's most populous county have delayed making more payments on a $3.2 billion sewer debt until Sept. 30.

Gov. Bob Riley said the decision Monday allows time for talks with Wall Street lenders to possibly avoid filing the largest municipal bankruptcy in U.S. history.

Riley, answering reporter's questions in Montgomery, said the decision by the Jefferson County commissioners allows ``some breathing time'' for additional negotiations on restructuring the county's huge debt.

The problem stems from years of risky borrowing agreements for sewer work. With the nation's credit squeeze, the county's payments increased dramatically under those deals.
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